Network Infrastructure - North America

North America

Revenue in the Network Infrastructure market is projected to reach US$58.86bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$40.69bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 7.38%, resulting in a market volume of US$84.03bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$230.70 in 2024.
In global comparison, most revenue will be generated in China (US$63,560m in 2024).

Key regions: India, China, Brazil, Indonesia, Japan

Definition:

The Network Infrastructure market focuses on hardware resources essential for service provider and enterprise networks. This market specifically focuses on solutions designed for the complex networking requirements of businesses and organizations, setting aside options like consumer-grade networking hardware products such as basic WIFI routers and network switches. These network infrastructure components are crucial in environments where reliable and secure connectivity, as well as efficient network operations, are paramount, establishing them as a fundamental part of the IT infrastructure in various industries.

Structure:

The Network Infrastructure market is structured in two markets based on the services model provided by the companies.

Service Provider Network Infrastructure covers the hardware resources of telecommunication service companies that enable wired and wireless network connectivity and communication to transfer voice and data.
Enterprise Network Infrastructure covers the hardware resources that enable wired and wireless network connectivity, communication, operations, and management of enterprises.

Additional Information:

The Network Infrastructure market includes revenue, revenue change, average spend per employee, and key player market shares as key performance indicators. Only revenues that are generated by primary vendors at the manufacturer price level either directly or through distribution channels (excluding value-added tax) are included, and revenues generated by resellers are excluded. Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B) as well as governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed.

Key players in the Network Infrastructure market include companies such as Huawei, HPE, Cisco, and Ericsson.

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Analyst Opinion

The Network Infrastructure market in North America is experiencing subdued growth due to factors such as slow adoption of digital technologies in the Service Provider and Enterprise sub-markets, along with increasing competition and cost pressures. However, rising demand for faster and more reliable networks is expected to drive future growth.

Customer preferences: As the demand for cloud-based services continues to grow, there is a noticeable shift towards software-defined networking (SDN) solutions in the Network Infrastructure Market within the Data Center Market. This trend is driven by the need for increased agility and flexibility in managing complex networks. Additionally, the rise of edge computing and the Internet of Things (IoT) is also driving the adoption of SDN, as it enables efficient and scalable management of distributed networks.

Trends in the market: In North America, the Network Infrastructure Market within the Data Center Market is experiencing a shift towards software-defined networking and virtualization. This trend is being driven by the increasing demand for agile and scalable network solutions, as well as the need to support emerging technologies such as cloud computing, IoT, and 5G. This shift is significant as it allows for easier management and automation of network infrastructure, leading to cost savings and improved efficiency. However, it also presents challenges for traditional network infrastructure vendors who may need to adapt their offerings and business models. Additionally, this trend creates opportunities for new players to enter the market with innovative software-based solutions.

Local special circumstances: In North America, the Network Infrastructure Market within the Data Center Market is heavily influenced by the region's advanced technological landscape and high demand for data storage and processing. Additionally, the strict regulatory environment and emphasis on data privacy drive the need for secure and compliant network infrastructure solutions. This is in contrast to other markets where regulations may be more relaxed, leading to different market dynamics. Furthermore, the cultural emphasis on innovation and efficiency in North America also plays a significant role in shaping the Network Infrastructure Market, as companies constantly seek to stay ahead of the curve and adopt the latest technologies.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market in North America is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investments in digital infrastructure. Countries with strong economic growth and favorable regulatory environments are experiencing higher market demand for network infrastructure solutions, while regions with economic challenges and limited investments are facing slower growth. Furthermore, the increasing adoption of cloud computing and the rising demand for data storage and processing are also driving the growth of the network infrastructure market in North America.

Methodology

Data coverage:

The data encompasses B2B enterprises. Figures are based on hardware-related expenses of businesses for setting up and maintaining an IT infrastructure.

Modeling approach / Market size:

Market sizes are determined through a top-down approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports and national statistical offices. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and level of digitization. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques, such as exponential trend smoothing and the S-curve function, is based on the behavior of the relevant market.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.